A discussion between Firas Nasir, co-head for Carlyle in the Middle East and North Africa, and reporters at a private equity conference in Dubai yielded two pieces of information regarding the private equity giant's business in the Middle East, as reported by Dow Jones on Monday.
Carlyle is planning the acquisition of a regional franchise as a tuck-in, or bolt-on for its Alamar food business in Saudi Arabia, which it bought a 43 percent stake in in December, and is in the due diligence phase of preparation for the deal.
It is also in the process of "considering exit options" for a medical unit in Turkey, and a lighting business in Saudi Arabia, though there was nothing definite about whether there would be a sale or an IPO, according to Dow Jones.
A tuck-in, or bolt-on acquisition, as defined by Investopedia, is when the acquiring company merges the acquired company into one of the divisions in the acquirer's entity, which, when it works, can increase revenues and broaden the acquiring company's capabilities and resources without having to build from the ground up. These types of acquisitions usually occur in mature markets.
From offices in Cairo, Egypt; Dubai, United Arab Emirates; and Istanbul, Turkey, Carlyle invests in a variety of sectors, including energy, financial services, health care, industrial, technology and transportation. It has so far made six investments in the region through its $500 million growth capital and buyout fund, Dow Jones reported, recently purchasing a Turkish retailer.
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Carlyle eyes bolt-on buys in Middle East
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